No Deal

Supercommittee disappointed with no deal and we're getting the gap down.  Ahead of Thanksgiving, the longs will look to lighten up, especially now that their November options protection is gone, and I'm sure many didn't want to throw what they thought would be more money down the drain buying December puts. 

We're going down the hole this week, it's gonna get hairy.  European bonds seem to be on the final stages of weakness, most of the weak hands are out, and we should see a bottom soon in the Italian and Spanish bond markets.  That should provide the needed backdrop for a sustained bounce once we bottom, either end of this week, or next week.  1175 or 1150 for a bottom, I am leaning towards 1150.